Q.Why do entrepreneurs, especially small ones, need institutional support? State any four reasons.

A small entrepreneur faces several shortages that a single person cannot overcome alone, and institutions exist to fill exactly those gaps.

Ordinary lenders hesitate to fund a new small venture, and a first-time entrepreneur often lacks the technology, management skills, and market reach a business needs; institutions supply these.

As Section a explains, a small or first-time entrepreneur faces many difficulties that a single individual cannot easily overcome, and institutional support exists to fill exactly these gaps. Any four reasons are:

1. Shortage of finance (capital). Most new entrepreneurs have limited savings, and ordinary lenders hesitate to fund a brand-new, small, or risky venture with no track record. Special institutions provide loans, refinance, and softer terms.
2. Lack of technical knowledge. Choosing the right machinery, technology, and production process needs technical expertise that a first-time entrepreneur may not have. Institutions supply technical guidance and consultancy.
3. Lack of managerial and marketing skills. Many entrepreneurs are good at their trade but weak in planning, accounts, and marketing, and a small unit finds it hard to reach customers and compete with big firms. Institutions run training programmes and provide marketing help.
4. Difficulty in arranging infrastructure and raw materials. Land, sheds, power, and water are costly and hard to arrange alone, and small units struggle to buy raw materials on good terms. Institutions develop industrial estates and arrange scarce materials. (Other acceptable reasons include promoting employment and balanced regional development, and encouraging more people to take up entrepreneurship.)
   ✓Final answer

   Small entrepreneurs need institutional support because of (i) shortage of finance, (ii) lack of technical knowledge, (iii) lack of managerial and marketing skills, and (iv) difficulty in arranging infrastructure and raw materials.

Do not just write 'they need money.' Finance is only one reason; a full answer should give several distinct needs — technical, managerial, marketing, and infrastructure — each briefly explained.